Blockbuster Withdraws Proposal to Acquire Circuit City
DALLAS, July 1 // PRNewswire-FirstCall // -- Blockbuster Inc. (NYSE: BBI)(NYSE: BBI.B) announced today that it has decided to withdraw its proposal to acquire Circuit City.
"Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster's shareholders to proceed with an acquisition of Circuit City," said Jim Keyes, Blockbuster Chairman and CEO. "We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand. We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment."
Blockbuster Inc. (NYSE: BBI)(NYSE: BBI.B) is a leading global provider of in-home movie and game entertainment, with more than 7,700 stores throughout the Americas, Europe, Asia and Australia. The company may be accessed worldwide at http://www.blockbuster.com/.
Forward Looking Statements
This release should be viewed in the context of Blockbuster's most recent Form 10-K, Form 10-Q and Form 8-Ks filed or furnished with the Securities and Exchange Commission ("SEC"), and Blockbuster's most recent quarterly earnings release and other press releases, all of which can be found on the Investor Relations section of http://www.blockbuster.com/.
This release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements that do not relate strictly to historical or current facts are forward-looking, including those regarding our operations, strategies, initiatives and investments, objectives, plans, goals and business and financial outlook.
These forward-looking statements are based on management's current intent, belief, expectations, estimates and projections regarding our company and our industry. They are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict. Actual results may vary materially from those expressed in or indicated by the forward-looking statements due to a variety of factors, including: (1) overall industry performance and the accuracy of our estimates and judgments regarding trends impacting the home video industry, (2) consumer appeal of our online subscription offering, combined in-store and online consumer offering, including BLOCKBUSTER Total Access, and other existing and planned product and service offerings, (3) our ability to respond to changing consumer preferences, including with respect to video on demand, digital distribution and other new technologies and alternative methods of content delivery, and to effectively adjust our offerings as necessary, (4) the impact of in-store and online competitor pricing and product and service offerings, (5) the extent and timing of our investments to develop and implement our initiatives and our ability to effectively control overall operating expenses and capital expenditures, and (6) other factors described in our filings with the SEC, including those discussed under the heading "Risk Factors" in our Form 10-K for the year ended January 6, 2008 and under "Disclosure Regarding Forward-Looking Information" in our report on Form 10-Q for the quarter ended April 6, 2008.
The forward-looking statements in this presentation are made only as of the date of this release and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.
SOURCE: Blockbuster Inc.